- They plan to reissue coins on their own Progmat platform
- The bank will not offer its own tokens
- The company will ensure reserves and compliance
Japan’s largest bank, MUFG Mitsubishi UFJ Financial Group Inc, talks with stablcoin issuers to issue its own coins. They will be pegged to the dollar and other national currencies,” writes Bloomberg. The company has its own blockchain platform, Progmat, to handle the tokens.
MUFG Vice President of Products Tatsuya Saito said banking stablcoins will help issuers and users feel safe using such payments. We are not talking about new coins.. The bank will offer the already well-known stabelcoins, but through the Progmat platform.
As of June 1, Japan has had a law that allows only nationally licensed banks, registered payment providers and trust companies to issue tokens. At the same time, the issuer of stabelcoins must provide the coins with 100% equivalent in fiat money.
Thus, MUFG Bank will offer global issuers to legally enter the local market through the Progmat platform.
The bank management refused to name the companies with which it is currently negotiating. They added that they are also discussing cooperation with local businesses that are interested in implementing digital payments.
Japan recently reported on the CBDC concept test and revealed new plans for digital currencies.